-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, AWFw1TwqPW0DsXlSkNiftwKfJxOtFQgOESi3uiRvuLIUQMnC7+IwzdEMXNyCkfT+ L/WUg7kkrV6Kf5bYPdq3dQ== 0000950129-96-001399.txt : 19960701 0000950129-96-001399.hdr.sgml : 19960701 ACCESSION NUMBER: 0000950129-96-001399 CONFORMED SUBMISSION TYPE: 11-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19951231 FILED AS OF DATE: 19960628 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: K N ENERGY INC CENTRAL INDEX KEY: 0000054502 STANDARD INDUSTRIAL CLASSIFICATION: NATURAL GAS TRANSMISSION & DISTRIBUTION [4923] IRS NUMBER: 480290000 STATE OF INCORPORATION: KS FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 11-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06446 FILM NUMBER: 96588726 BUSINESS ADDRESS: STREET 1: 370 VAN GORDON ST STREET 2: PO BOX 281304 CITY: LAKEWOOD STATE: CO ZIP: 80228-8304 BUSINESS PHONE: 3039891740 FORMER COMPANY: FORMER CONFORMED NAME: KN ENERGY INC DATE OF NAME CHANGE: 19920430 FORMER COMPANY: FORMER CONFORMED NAME: KANSAS NEBRASKA NATURAL GAS CO INC DATE OF NAME CHANGE: 19830403 11-K 1 KN ENERGY, INC - DATED 12/31/95 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ----------------------- FORM 11-K ----------------------- ANNUAL REPORT Pursuant to Section 15 (d) of the Securities Exchange Act of 1934 For the Fiscal Year Ended December 31, 1995 Commission File Number 1-6446 ------------------------ K N Energy, Inc. Profit Sharing and Savings Plan K N Energy, Inc. P.O. Box 281304 Lakewood, Colorado 80228-8304 2 The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees have duly caused this annual report to be signed by the undersigned thereunto duly authorized. PROFIT SHARING AND SAVINGS PLAN By: /S/ William S. Garner -------------------------------- Name: William S. Garner ------------------------------ Title: Vice President ----------------------------- Date: June 28, 1996 ------------------------------ 2 3 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN INDEX TO FINANCIAL STATEMENTS AND SCHEDULES PAGE ---- Report of Independent Public Accountants 4 Consent of Independent Public Accountants 5 Statements of Financial Condition- December 31, 1995 and 1994 7 Statements of Income and Changes in Plan Equity for the Years Ended December 31, 1995, 1994 and 1993 8 Notes to Financial Statements 9-14 3 4 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS To the Plan Administrator, K N Energy, Inc. Profit Sharing and Savings Plan: We have audited the accompanying statements of financial condition of the K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN (the "Plan"), as of December 31, 1995 and 1994, and the related statements of income and changes in plan equity for each of the three years in the period ended December 31, 1995. These financial statements and supplemental schedules referred to below are the responsibility of K N Energy, Inc. (the "Plan Administrator"). Our responsibility is to express an opinion on these financial statements and supplemental schedules based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial condition of the Plan as of December 31, 1995 and 1994, and the Plan income and changes in Plan equity for each of the three years in the period ended December 31, 1995, in conformity with generally accepted accounting principles. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedules of the Allocation of Plan Assets and Liabilities to Investment Programs, Allocation of Plan Income and Changes in Plan Equity to Investment Programs, Schedule of Plan Assets Held for Investment Purposes and Schedule of Reportable Transactions are presented for purposes of complying with Securities and Exchange Commission requirements and the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the basic financial statements. Such schedules have been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole. /S/ ARTHUR ANDERSEN LLP Denver, Colorado, June 21, 1996. 4 5 CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS As independent public accountants, we hereby consent to the incorporation by reference of our report, included in this Form 11-K, into the Company's previously filed Registration Statement File No. 33-24934. /S/ ARTHUR ANDERSEN LLP Denver, Colorado, June 28, 1996. 5 6 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN INDEX
Page(s) ------- FINANCIAL STATEMENTS: Statements of Financial Condition - December 31, 1995 and 1994 7 Statements of Income and Changes in Plan Equity for the Years Ended December 31, 1995, 1994 and 1993 8 NOTES TO FINANCIAL STATEMENTS 9-14 SUPPLEMENTAL SCHEDULES: Schedule I - Allocation of Plan Assets and Liabilities to Investment Programs - December 31, 1995 and 1994 15-16 Schedule II - Allocation of Plan Income and Changes in Plan Equity to Investment Programs for the Years Ended December 31, 1995, 1994 and 1993 17-19 Schedule III - Schedule of Plan Assets Held for Investment Purposes as of December 31, 1995 20 Schedule IV - Schedule of Reportable Transactions for the Year Ended December 31, 1995 21
6 7 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN STATEMENTS OF FINANCIAL CONDITION--DECEMBER 31, 1995 AND 1994
ASSETS 1995 1994 ------ (Schedule I) INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $ 53,171,364 $ 45,902,256 Voyager Fund 21,101,795 15,244,974 Global Growth Fund 8,551,622 8,478,142 Fund for Growth and Income 14,194,547 11,226,637 Income Fund 6,978,673 6,866,467 U.S. Government Income Trust 10,222,326 10,485,640 Money Market Fund 697,360 -- Participant loans 1,100,816 526,283 ------------ ------------ 116,018,503 98,730,399 CASH -- 20,954 RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) 5,062,761 2,324,070 Interest and dividends 64,910 60,323 ------------ ------------ Total assets $121,146,174 $101,135,746 ============ ============ LIABILITIES AND PLAN EQUITY --------------------------- LIABILITIES $ -- $ -- PLAN EQUITY 121,146,174 101,135,746 ------------ ------------ Total liabilities and plan equity $121,146,174 $101,135,746 ============ ============
The accompanying notes and schedules are an integral part of these financial statements. 7 8 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN STATEMENTS OF INCOME AND CHANGES IN PLAN EQUITY FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993
1995 1994 1993 (Schedule II) CONTRIBUTIONS (Notes 1 and 2): Employer $ 5,062,761 $ 2,324,070 $ 2,432,600 Employee 3,717,443 2,246,065 -- ------------- ------------- ------------- 8,780,204 4,570,135 2,432,600 CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) -- -- 26,964 ------------- ------------- ------------- EARNINGS (LOSSES) FROM INVESTMENTS (Note 2): Net appreciation (depreciation) in market value of investments 20,670,351 (6,625,234) 10,329,677 Interest 63,455 385,559 1,470,940 Dividends 5,748,740 3,885,135 1,643,988 ------------- ------------- ------------- Total earnings (losses) from investments 26,482,546 (2,354,540) 13,444,605 DISTRIBUTIONS: Directly to participants (15,436,519) (4,331,688) (4,233,987) To insurance company for provision of benefits, net of policy dividends (17,043) (8,811) 12,881 Administration fees (9,450) -- -- ------------- ------------- ------------- Total distributions (15,463,012) (4,340,499) (4,221,106) ------------- ------------- ------------- TRANSFERS FROM RELATED PLAN (Note 1) 210,690 21,725,256 -- ------------- ------------- ------------- NET INCREASE IN PLAN EQUITY DURING THE YEAR 20,010,428 19,600,352 11,683,063 PLAN EQUITY, beginning of year 101,135,746 81,535,394 69,852,331 ------------- ------------- ------------- PLAN EQUITY, end of year $ 121,146,174 $ 101,135,746 $ 81,535,394 ============= ============= =============
The accompanying notes and schedules are an integral part of these financial statements. 8 9 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN NOTES TO FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1995, 1994 AND 1993 (1) DESCRIPTION OF THE PLAN General The Employees Retirement Fund Trust Profit Sharing Plan (the "Profit Sharing Plan") of K N Energy, Inc. (the "Company"), was established in 1945 for the benefit of eligible employees (as defined in the Profit Sharing Plan indenture). The Profit Sharing Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA"). The Profit Sharing Plan is the surviving plan of a merger effective July 1, 1994 of the 401(k) Retirement Savings Plan and Trust (the "401(k) Plan") into the Profit Sharing Plan. The surviving Profit Sharing Plan was amended and restated, including the name change to the Profit Sharing and Savings Plan (the "Plan"). The amounts from the 401(k) Plan resulting from the merger are reflected as Transfers from Related Plan in the accompanying 1994 Statement of Income and Changes in Plan Equity. Benefits under the Plan are not guaranteed by the Pension Benefit Guarantee Corporation. Reference should be made to the Plan agreement for a more complete description of the Plan's provisions. 9 10 Contributions Effective July 1, 1994, participants may elect to make pretax contributions totaling from 1% to 15% of their annual compensation, limited by requirements of the Internal Revenue Code. Participants may discontinue their election to contribute at any time. For each Plan year, the Company, in total, pays employees directly and/or contributes to the Plan 10% of the total compensation (excluding bonuses) paid to eligible employees during that year, or 10% of the eligible net profit, as defined, of the Company for that year, whichever is less. The 1995, 1994 and 1993 contributions were based on eligible net income. The total Company contribution was $5,062,761, $2,324,070 and $2,432,600 in 1995, 1994 and 1993, respectively. Employees may elect to receive 50% of the contribution in cash. This amount is paid directly to participants and is not an asset of the Plan. Beginning with the Company contribution in 1990, 50% of each participant's portion of the annual Company contribution must be designated to the fund consisting of the Company's common stock, which was Fund K5 prior to 1994. Since 1994, the fund has been the K N Energy, Inc. Common Stock Fund. Participants are not allowed to transfer their investments until age 55. Under IRS regulations, annual additions under the Plan and all other plans sponsored by the Company are limited to the lesser of 25% of eligible compensation or $30,000. Annual additions are defined as employer contributions and employee contributions. Investment Programs Participants may initially designate, and may periodically redesignate, their allocated portion of the contribution in percentage increments divisible by five, to one or more of the eligible investment programs. New Plan participants may elect to transfer investments from other qualified plans into the Plan within a specified time following their date of hire. 10 11 The investment programs of the Plan and the number of participants in each at December 31, 1995 and 1994 are briefly described as follows: K N ENERGY, INC. COMMON STOCK FUND--This investment program consists of shares of the Company's common stock. At December 31, 1995, 1,807 participants held 1,825,626 shares with a cost of $15,677,538 and a market value of $53,171,364. At December 31, 1994, 1,785 participants held 1,932,726 shares with a cost of $16,419,947 and a market value of $45,902,256. PUTNAM VOYAGER FUND--This program consists of investments in common stocks of small to medium-sized companies that is managed by Putnam Investment Management, Inc. At December 31, 1995, 1,334 participants held 1,383,725 shares with a cost of $17,015,802 and a market value of $21,101,795. At December 31, 1994, the investments had a cost of $15,872,323 and a market value of $15,244,974. There were 1,182 participants in the program who held 1,323,348 shares. PUTNAM GLOBAL GROWTH FUND--This program seeks capital appreciation by investing primarily in common stocks traded in security markets located in a number of foreign countries and in the United States. At December 31, 1995, 1,009 participants held 856,018 shares with a cost of $8,431,112 and a market value of $8,551,622. At December 31, 1994, the investments had a cost of $9,104,642 and a market value of $8,478,142. There were 919,538 shares held by 937 participants. PUTNAM FUND FOR GROWTH AND INCOME--This program seeks capital growth and current income by investing primarily in a portfolio of common stocks that offer the potential for capital growth, current income or both. At December 31, 1995, 1,112 participants held 876,748 shares with a cost of $12,333,755 and a market value of $14,194,547. At December 31, 1994, the investments had a cost of $12,238,400 and a market value of $11,226,637. There were 882,597 shares held by 1,017 participants. PUTNAM INCOME FUND--This program invests in a portfolio of debt securities, both government and corporate obligations, preferred stocks and dividend-paying common stocks. At December 31, 1995, 674 participants held 965,239 shares with a cost of $6,462,876 and a market value of $6,978,673. At December 31, 1994, the investments had a cost of $7,072,794 and a market value of $6,866,467. There were 655 participants in the program who held 1,061,278 shares. PUTNAM U.S. GOVERNMENT INCOME TRUST--This program invests in a portfolio of government obligations. At December 31, 1995, 913 participants held 775,006 shares with a cost of $9,734,774 and a market value of $10,222,326. At December 31, 1994, the investments had a cost of $10,800,350 and a market value of $10,485,640. There were 696 participants in the program who held 860,184 shares. PUTNAM MONEY MARKET--This program invests primarily in money market investments. At December 31, 1995, 16 participants held 697,360 shares with a cost and a market value of $697,360. 11 12 The investment programs of the Plan for the year ended December 31, 1993, are briefly described as follows: FUND KN--This investment program consisted of shares of the Company's common stock. FUND K5--This investment program consisted of shares of the Company's common stock. FUND EQ--This program consisted of investment units in the Harris Trust and Savings Bank ("Harris") Index Fund, which is designed to track the Standard & Poor's 500 Stock Average ("S&P 500") and in the Harris Reserve Fund. The Index Fund consisted of investments in corporate common stocks selected by Harris from the S&P 500. The Index Fund did not include common stock of the Company. FUND BI--This program consisted of investments in an intermediate bond pool administered by Alliance Capital Management Corporation ("Alliance"). FUND GI--This program consisted of investments in short-term U.S. Government Securities and was managed by the Ark Asset Management Company, Inc. On August 10, 1993, K N's Board of Directors declared a three-for-two common stock split which was distributed on October 4, 1993. All share amounts in Fund KN and Fund K5 have been restated to reflect the stock split. Prior to January 1, 1987, participants had the option of purchasing life insurance through the Plan. Thereafter, the segment of the Plan allowing for the purchase of a life insurance policy on the life of the participant was frozen so that no new policies could be written. Participants with policies at December 31, 1986, had the following options: 1) allow the policy to remain in force with a frozen face value and fixed premium payments, 2) elect to use the cash surrender value ("CSV") of the policy to purchase paid-up life insurance or 3) reinvest the CSV of the policy in another fund. The value of life insurance in force is not recorded in these financial statements. Benefits/Vesting Obligations for distributions to participants who terminated from the Plan prior to December 31, 1995 and 1994, but were not paid until subsequent to yearend are immaterial. Participants have fully vested and nonforfeitable interests in their accounts at all times. Employees hired after January 1, 1995 are subject to a four-year vesting provision (25% per year of service) for Company contributions. Contributions may be withdrawn, with the approval of the Advisory Committee, in the event of unusual expenses connected with illness or disability, in the event that the money is necessary for children's college expenses, or for the purchase of a primary residence, as defined in the Plan document. If not withdrawn earlier, a participant's account will be distributed in the event of termination of employment, death, or termination of the Plan. If a 12 13 participant's account is less than $3,500, a lump-sum distribution will generally be made. If a participant's account is greater than $3,500, the participant's distribution options are: lump-sum distribution, monthly or yearly installments, or purchase of an annuity. Retirees may continue to leave their account in the Plan. Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination , participants will become 100 percent vested in their accounts. Effective September 1, 1994, participants may borrow from their deferral portion of their fund accounts a minimum of $500 up to a maximum equal to the lesser of $50,000 or 50 percent of their vested deferral account balance. The loans are subject to certain restrictions, as defined in the Plan document and applicable restrictions under the IRC. (2) SIGNIFICANT ACCOUNTING POLICIES Basis of Accounting and Valuation The financial statements of the Plan are prepared on the accrual basis of accounting. The preparation of the financial statements in conformity with generally accepted accounting principles requires the Plan's management to use estimates and assumptions that affect the accompanying financial statements and disclosures. Actual results could differ from these estimates. Investments are accounted for at yearend fair market values. Participant loans are valued at cost, which approximates fair market value. Unrealized appreciation (depreciation) is the difference between the fair value at the end of the current year and the cost of the investment, if acquired during the Plan year, or the fair value at the beginning of the Plan year. Therefore, the cost basis reflected in Note 1 represents revalued ERISA cost. The accompanying supplemental Schedule I reflects cost basis determined utilizing an original cost approach as required by ERISA. Other The Company's annual contribution is determined when annual net income and payroll amounts are known. The contribution is allocated to participants subsequent to yearend. 13 14 The Company provides certain administrative and accounting services to the Plan at no cost and also pays the cost of certain outside services provided to the Plan. Such outside services paid by the Company were approximately $60,000 and $64,000 for 1995 and 1994, respectively. Benefits are recorded when paid. Reclassifications Certain 1994 and 1993 amounts have been reclassified to conform with the 1995 presentation. (3) FEDERAL INCOME TAXES The Plan is qualified under the Internal Revenue Code as exempt from Federal income taxes and the Plan received a favorable determination letter from the Internal Revenue Service (the "IRS") in 1986. The Plan was amended and restated effective July 1, 1994 and, accordingly, filed for a new determination letter on March 31, 1995. This request is currently pending with the IRS. The Plan administrator believes that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, the administrator believes that the Plan was tax exempt as of the financial statement date. Employer contributions to the Plan and all earnings from Plan investments are not taxable to participants until a partial or complete distribution of such contributions or earnings is made. (4) PARTY-IN-INTEREST TRANSACTIONS Certain Plan investments are shares of K N Energy, Inc. common stock. The Plan had no reportable or prohibited party-in-interest transactions for the years ended December 31, 1995, 1994 and 1993. 14 15 SCHEDULE I Page 1 of 2 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN ASSETS AND LIABILITIES TO INVESTMENT PROGRAMS DECEMBER 31, 1995
K N The Putnam Energy, Inc. Putnam Putnam Fund for Putnam Common Stock Voyager Global Growth and Income Fund Fund Growth Fund Income Fund ------------- ------------- ------------ ------------- ------------ ASSETS ------ INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $53,171,364 $- $- $- $- Voyager Fund - 21,101,795 - - - Global Growth Fund - - 8,551,622 - - Fund for Growth and Income - - - 14,194,547 - Income Fund - - - - 6,978,673 U. S. Government Income Trust - - - - - Money Market Fund - - - - - Participant loans - - - - - ------------- ------------- ------------ ------------- ------------ 53,171,364 21,101,795 8,551,622 14,194,547 6,978,673 ------------- ------------- ------------ ------------- ------------ RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) - - - - - Interest and dividends - - - - 20,955 ------------- ------------- ------------ ------------- ------------ Total assets $53,171,364 $21,101,795 $8,551,622 $14,194,547 $6,999,628 ============= ============= ============ ============= ============ LIABILITIES AND PLAN EQUITY --------------------------- LIABILITIES $- $- $- $- $- PLAN EQUITY 53,171,364 21,101,795 8,551,622 14,194,547 6,999,628 ------------- ------------- ------------ ------------- ------------ Total liabilities and plan equity $53,171,364 $21,101,795 $8,551,622 $14,194,547 $6,999,628 ============= ============= ============ ============= ============
Putnam Money U. S. Government Market Loan Income Trust Fund Fund Other Total ------------- ---------- ------------ ------------ --------------- ASSETS ------ INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $- $- $- - $53,171,364 Voyager Fund - - - - 21,101,795 Global Growth Fund - - - - 8,551,622 Fund for Growth and Income - - - - 14,194,547 Income Fund - - - - 6,978,673 U. S. Government Income Trust 10,222,326 - - - 10,222,326 Money Market Fund - 697,360 - - 697,360 Participant loans - - 1,100,816 - 1,100,816 ------------- ---------- ------------ ------------ --------------- 10,222,326 697,360 1,100,816 - 116,018,503 ------------- ---------- ------------ ------------ --------------- RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) - - - 5,062,761 5,062,761 Interest and dividends 42,745 1,210 - - 64,910 ------------- ---------- ------------ ------------ --------------- Total assets $10,265,071 $698,570 $1,100,816 $5,062,761 $121,146,174 ============= ========== ============ ============ =============== LIABILITIES AND PLAN EQUITY --------------------------- LIABILITIES $- $- $- $- $- PLAN EQUITY 10,265,071 698,570 1,100,816 5,062,761 121,146,174 ------------- ---------- ------------ ------------ --------------- Total liabilities and plan equity $10,265,071 $698,570 $1,100,816 $5,062,761 $121,146,174 ============= ========== ============ ============ ===============
The accompanying notes to financial statements are an integral part of this schedule. - 15 - 16 SCHEDULE I Page 2 of 2 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN ASSETS AND LIABILITIES TO INVESTMENT PROGRAMS DECEMBER 31, 1994
K N The Putnam Energy, Inc. Putnam Putnam Fund for Putnam Common Stock Voyager Global Growth and Income ASSETS Fund Fund Growth Fund Income Fund ------ ------------- ------------- ------------ ------------- ------------ INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $45,902,256 $- $- $- $- Voyager Fund - 15,244,974 - - - Global Growth Fund - - 8,478,142 - - Fund for Growth and Income - - - 11,226,637 - Income Fund - - - - 6,866,467 U. S. Government Income Trust - - - - - Participant loans - - - - - ------------- ------------- ------------ ------------- ------------ 45,902,256 15,244,974 8,478,142 11,226,637 6,866,467 ------------- ------------- ------------ ------------- ------------ CASH - - - - - RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) - - - - - Interest and dividends - - - - 14,194 ------------- ------------- ------------ ------------- ------------ Total assets $45,902,256 $15,244,974 $8,478,142 $11,226,637 $6,880,661 ============= ============= ============ ============= ============ LIABILITIES AND PLAN EQUITY --------------------------- LIABILITIES $- $- $- $- $- PLAN EQUITY 45,902,256 15,244,974 8,478,142 11,226,637 6,880,661 ------------- ------------- ------------ ------------- ------------ Total liabilities and plan equity $45,902,256 $15,244,974 $8,478,142 $11,226,637 $6,880,661 ============= ============= ============ ============= ============
Putnam Putnam U. S. Government Loan ASSETS Income Trust Fund Other Total - ------ ------------- ---------- ------------ --------------- INVESTMENTS, at market value (Notes 1 and 2): K N Energy, Inc. common stock $- $- $- $45,902,256 Voyager Fund - - - 15,244,974 Global Growth Fund - - - 8,478,142 Fund for Growth and Income - - - 11,226,637 Income Fund - - - 6,866,467 U. S. Government Income Trust 10,485,640 - - 10,485,640 Participant loans - 526,283 - 526,283 ------------- ---------- ------------ --------------- 10,485,640 526,283 - 98,730,399 ------------- ---------- ------------ --------------- CASH - - 20,954 20,954 RECEIVABLES: K N Energy, Inc. (Notes 1 and 2) - - 2,324,070 2,324,070 Interest and dividends 46,129 - - 60,323 ------------- ---------- ------------ --------------- Total assets $10,531,769 $526,283 $2,345,024 $101,135,746 ============= ========== ============ =============== LIABILITIES AND PLAN EQUITY --------------------------- LIABILITIES $- $- $- $- PLAN EQUITY 10,531,769 526,283 2,345,024 101,135,746 ------------- ---------- ------------ --------------- Total liabilities and plan equity $10,531,769 $526,283 $2,345,024 $101,135,746 ============= ========== ============ ===============
The accompanying notes to financial statements are an integral part of this schedule. - 16 - 17 SCHEDULE II Page 1 of 3 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN INCOME AND CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1995
K N The Putnam Energy, Inc. Putnam Putnam Fund for Putnam Common Stock Voyager Global Growth and Income Fund Fund Growth Fund Income Fund -------------- -------------- ------------ -------------- ------------ CONTRIBUTIONS (Notes 1 and 2): Employer $- $- $- $- $- Employee 1,237,494 857,036 512,214 528,051 227,680 -------------- -------------- ------------ -------------- ------------ LOAN ACTIVITY, net (251,111) (105,720) (56,334) (54,284) (8,173) -------------- -------------- ------------ -------------- ------------ EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 10,310,590 4,994,664 690,341 3,059,321 780,531 Interest - - - - - Dividends 1,926,733 1,125,040 475,523 956,596 494,376 -------------- -------------- ------------ -------------- ------------ Total earnings from investments 12,237,323 6,119,704 1,165,864 4,015,917 1,274,907 -------------- -------------- ------------ -------------- ------------ DISTRIBUTIONS: Directly to participants (5,725,961) (2,170,982) (999,084) (2,361,029) (1,333,160) To insurance company for provision of benefits, net of policy dividends (8,101) (2,276) (1,599) (1,964) (1,111) Administration fees (1,430) (2,284) (998) (1,330) (711) -------------- -------------- ------------ -------------- ------------ Total distributions (5,735,492) (2,175,542) (1,001,681) (2,364,323) (1,334,982) -------------- -------------- ------------ -------------- ------------ TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) (240,808) 1,151,536 (570,593) 833,532 (43,148) TRANSFERS FROM RELATED PLAN 21,702 9,807 24,010 9,017 2,683 -------------- -------------- ------------ -------------- ------------ NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 7,269,108 5,856,821 73,480 2,967,910 118,967 PLAN EQUITY, beginning of year 45,902,256 15,244,974 8,478,142 11,226,637 6,880,661 -------------- -------------- ------------ -------------- ------------ PLAN EQUITY, end of year $53,171,364 $21,101,795 $8,551,622 $14,194,547 $6,999,628 ============== ============== ============ ============== ============
Putnam Money U.S. Government Market Loan Income Trust Fund Fund Other Total -------------- ------------ ------------ ------------ --------------- CONTRIBUTIONS (Notes 1 and 2): Employer $- $- $- $5,062,761 $5,062,761 Employee 348,408 6,560 - - 3,717,443 -------------- ------------ ------------ ------------ --------------- LOAN ACTIVITY, net 7,425 381 584,611 (116,795) - -------------- ------------ ------------ ------------ --------------- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 834,904 - - - 20,670,351 Interest - - 63,455 - 63,455 Dividends 754,126 16,346 - - 5,748,740 -------------- ------------ ------------ ------------ --------------- Total earnings from investments 1,589,030 16,346 63,455 - 26,482,546 -------------- ------------ ------------ ------------ --------------- DISTRIBUTIONS: Directly to participants (2,429,205) (343,565) (73,533) - (15,436,519) To insurance company for provision of benefits, net of policy dividends (1,887) (105) - - (17,043) Administration fees (2,637) (60) - - (9,450) -------------- ------------ ------------ ------------ --------------- Total distributions (2,433,729) (343,730) (73,533) - (15,463,012) -------------- ------------ ------------ ------------ --------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) 195,492 1,019,013 - (2,345,024) - TRANSFERS FROM RELATED PLAN 26,676 - - 116,795 210,690 -------------- ------------ ------------ ------------ --------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR (266,698) 698,570 574,533 2,717,737 20,010,428 PLAN EQUITY, beginning of year 10,531,769 - 526,283 2,345,024 101,135,746 -------------- ------------ ------------ ------------ --------------- PLAN EQUITY, end of year $10,265,071 $698,570 $1,100,816 $5,062,761 $121,146,174 ============== ============ ============ ============ ===============
The accompanying notes to financial statements are an integral part of this schedule. - 17 - 18 SCHEDULE II Page 2 of 3 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN INCOME AND CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1994
K N The Putnam Energy, Inc. Putnam Putnam Fund for Putnam Common Stock Voyager Global Growth and Income Fund Fund Growth Fund Income Fund -------------- -------------- ------------- -------------- ------------- CONTRIBUTIONS (Notes 1 and 2): Employer $- $- $- $- $- Employee 565,483 387,136 253,273 255,573 119,720 -------------- -------------- ------------- -------------- ------------- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 2,542,167 (631,016) (642,110) (1,026,625) (211,896) Interest - - - - - Dividends 961,880 649,170 283,267 549,945 194,606 -------------- -------------- ------------ -------------- ------------ Total earnings from investments 3,504,047 18,154 (358,843) (476,680) (17,290) -------------- -------------- ------------ -------------- ------------ DISTRIBUTIONS: Directly to participants (753,357) (202,677) (242,624) (159,392) (139,658) To insurance company for provision of benefits, net of policy dividends (4,004) (1,151) (886) (1,038) (565) -------------- -------------- ------------ -------------- ------------ Total distributions (757,361) (203,828) (243,510) (160,430) (140,223) -------------- -------------- ------------ -------------- ------------ TRANSFERS TO (FROM) INVESTMENT PROGRAMS AND 401(k) PLAN (Note 1) 42,590,087 15,043,512 8,827,222 11,608,174 6,918,454 -------------- -------------- ------------ -------------- ------------ NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 45,902,256 15,244,974 8,478,142 11,226,637 6,880,661 PLAN EQUITY, beginning of year - - - - - -------------- -------------- ------------ -------------- ------------ PLAN EQUITY, end of year $45,902,256 $15,244,974 $8,478,142 $11,226,637 $6,880,661 ============== ============== ============= ============== =============
Putnam U.S. Government Income Trust Fund KN Fund K5 Fund EQ Fund BI -------------- -------------- ------------- ------------- ------------- CONTRIBUTIONS (Notes 1 and 2): Employer $- $- $- $- $- Employee 138,597 - - - - -------------- -------------- ------------- ------------- ------------- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) (331,700) (4,301,879) (908,359) (658,737) (205,376) Interest - - - (1,570) - Dividends 328,899 567,107 145,878 204,383 - -------------- -------------- ------------- -------------- ------------- Total earnings from investments (2,801) (3,734,772) (762,481) (455,924) (205,376) -------------- -------------- ------------- -------------- ------------- DISTRIBUTIONS: Directly to participants (480,194) (559,531) (70,311) (161,703) (286,915) To insurance company for provision of benefits, net of policy dividends (1,167) - - - - -------------- -------------- ------------- -------------- ------------- Total distributions (481,361) (559,531) (70,311) (161,703) (286,915) -------------- -------------- ------------- -------------- ------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS AND 401(k) PLAN (Note 1) 10,877,334 (25,396,213) (6,426,580) (14,356,911) (6,252,317) -------------- -------------- ------------- -------------- ------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 10,531,769 (29,690,516) (7,259,372) (14,974,538) (6,744,608) PLAN EQUITY, beginning of year - 29,690,516 7,259,372 14,974,538 6,744,608 -------------- -------------- ------------- -------------- ------------- PLAN EQUITY, end of year $10,531,769 $- $- $- $- ============== ============== ============= ============== =============
Loan Fund GI Fund Other Total ------------- ---------- ------------- --------------- CONTRIBUTIONS (Notes 1 and 2): Employer $- $- $2,324,070 $2,324,070 Employee - 526,283 - 2,246,065 ------------- ---------- ------------- --------------- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) (249,703) - - (6,625,234) Interest 387,129 - - 385,559 Dividends - - - 3,885,135 -------------- ---------- ------------- --------------- Total earnings from investments 137,426 - - (2,354,540) -------------- ---------- ------------- --------------- DISTRIBUTIONS: Directly to participants (1,275,326) - - (4,331,688) To insurance company for provision of benefits, net of policy dividends - - - (8,811) -------------- ---------- ------------- --------------- Total distributions (1,275,326) - - (4,340,499) -------------- ---------- ------------- --------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS AND 401(k) PLAN (Note 1) (21,728,460) - 20,954 21,725,256 -------------- ---------- ------------- --------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR (22,866,360) 526,283 2,345,024 19,600,352 PLAN EQUITY, beginning of year 22,866,360 - - 81,535,394 -------------- ---------- ------------- --------------- PLAN EQUITY, end of year $- $526,283 $2,345,024 $101,135,746 ============== ========== ============= ===============
The accompanying notes to financial statements are an integral part of this schedule. - 18 - 19 SCHEDULE II Page 3 of 3 K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ALLOCATION OF PLAN INCOME AND CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS FOR THE YEAR ENDED DECEMBER 31, 1993
Fund KN Fund K5 Fund EQ -------------- ------------ -------------- CONTRIBUTIONS (Notes 1 and 2): Employer $436,184 $1,181,187 $331,625 -------------- ------------ -------------- CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) - - - -------------- ------------ -------------- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 7,830,802 1,518,668 937,806 Interest - - 1,041 Dividends 1,035,809 215,749 392,430 -------------- ------------ -------------- Total earnings from investments 8,866,611 1,734,417 1,331,277 -------------- ------------ -------------- DISTRIBUTIONS: Directly to participants (961,242) (150,374) (494,582) To insurance company for provision of benefits, net of policy dividends - - - -------------- ------------ -------------- Total distributions (961,242) (150,374) (494,582) -------------- ------------ -------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) (71,325) (14,452) 302,585 -------------- ------------ -------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 8,270,228 2,750,778 1,470,905 PLAN EQUITY, beginning of year 21,420,288 4,508,594 13,503,633 -------------- ------------ -------------- PLAN EQUITY, end of year $29,690,516 $7,259,372 $14,974,538 ============== ============ ==============
Fund BI Fund GI Total ------------ -------------- -------------- CONTRIBUTIONS (Notes 1 and 2): Employer $168,739 $314,865 $2,432,600 ------------ -------------- -------------- CASH SURRENDER VALUE OF LIFE INSURANCE (Note 1) - 26,964 26,964 ------------ -------------- -------------- EARNINGS FROM INVESTMENTS: Net appreciation (depreciation) in market value of investments (Note 2) 250,588 (208,187) 10,329,677 Interest 337,067 1,132,832 1,470,940 Dividends - - 1,643,988 ------------ -------------- -------------- Total earnings from investments 587,655 924,645 13,444,605 ------------ -------------- -------------- DISTRIBUTIONS: Directly to participants (316,106) (2,311,683) (4,233,987) To insurance company for provision of benefits, net of policy dividends - 12,881 12,881 ------------ -------------- -------------- Total distributions (316,106) (2,298,802) (4,221,106) ------------ -------------- -------------- TRANSFERS TO (FROM) INVESTMENT PROGRAMS (Note 1) 275,468 (492,276) - ------------ -------------- -------------- NET INCREASE (DECREASE) IN PLAN EQUITY DURING THE YEAR 715,756 (1,524,604) 11,683,063 PLAN EQUITY, beginning of year 6,028,852 24,390,964 69,852,331 ------------ -------------- -------------- PLAN EQUITY, end of year $6,744,608 $22,866,360 $81,535,394 ============ ============== ==============
The accompanying notes to financial statements are an integral part of this schedule. - 19 - 20 SCHEDULE III K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ITEM 27aSCHEDULE OF PLAN ASSETS HELD FOR INVESTMENT PURPOSES AS OF DECEMBER 31, 1995
Number of Shares or Market Identity of Party Involved Description of Asset Units Cost* Value Putnam Investments * * K N Energy, Inc. Common Stock 1,825,626 $ 15,677,538 $ 53,171,364 Putnam Investments Putnam Voyager Fund 1,383,725 17,015,802 21,101,795 Putnam Investments Putnam Global Growth Fund 856,018 8,431,112 8,551,622 Putnam Investments The Putnam Fund for Growth and Income 876,748 12,333,755 14,194,547 Putnam Investments Putnam Income Fund 965,239 6,462,876 6,978,673 Putnam Investments Putnam U.S. Government Income Trust 775,006 9,734,774 10,222,326 Putnam Investments Putnam Money Market 697,360 697,360 697,360 Participant Loans Interest rates ranging from 7.75% to 9.0% N/A 1,100,816 ------------ ------------ $ 70,353,217 $116,018,503 ============ ============
* Determined using original historical cost * * Related party The accompanying notes to financial statements are an integral part of this schedule. 20 21 SCHEDULE IV K N ENERGY, INC. PROFIT SHARING AND SAVINGS PLAN ITEM 27dSCHEDULE OF REPORTABLE TRANSACTIONS FOR THE YEAR ENDED DECEMBER 31, 1995
Number of Transactions Identity of Description of ------------------ **Purchase **Sales Cost Gain Party Involved Transaction Purchases Sales Price Price Basis (Loss) -------------- ----------- --------- ----- ---------- ----------- ---------- ---------- Putnam Investments: Putnam Fund For 181 -- $2,737,903 $ -- $2,737,903 $ -- Growth and Income -- 365 -- 2,829,355 2,642,588 186,767 Putnam Voyager Fund 189 -- 3,661,658 -- 3,661,658 -- -- 411 -- 2,799,560 2,518,239 281,321 * K N Energy, Inc. 146 -- 5,191,562 -- 5,191,562 -- Common Stock -- 376 -- 8,234,858 5,935,785 2,299,073
* Related Party ** The current value of the assets on the transaction date is equal to the purchase/sales price on that date. The accompanying notes to financial statements are an integral part of this statement. 21 -----END PRIVACY-ENHANCED MESSAGE-----